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Jaspreet Potter, a solicitor at IBB solicitors, explains that a shareholders agreement is a contract between a company and its shareholders to govern their relationship, personal rights, and obligations. This agreement, along with the articles of association, establishes internal rules to prevent disputes. It is advised to have a shareholders agreement in place from the beginning to address potential issues early on. This proactive approach is quicker and easier than dealing with disputes later on when the business is already operating.
